The Dynamics of the Brazilian Current Account with Rule of Thumb Consumers
The traditional intertemporal current account model assumesthat all individuals follow the permanent income theory. The innovation proposed in this work is to incorporate the idea that some consumers have rule of thumb behavior with the classic current account dynamics model. The share of aggregate...
| Main Authors: | , |
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| Format: | Article |
| Language: | Portuguese |
| Published: |
Universidade de São Paulo
2016-06-01
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| Series: | Economia Aplicada |
| Subjects: | |
| Online Access: | http://www.revistas.usp.br/ecoa/article/view/117017 |
| _version_ | 1819129859307208704 |
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| author | Lucio Hellery Holanda Oliveira Carlos Enrique Carrasco-Gutierrez |
| author_facet | Lucio Hellery Holanda Oliveira Carlos Enrique Carrasco-Gutierrez |
| author_sort | Lucio Hellery Holanda Oliveira |
| collection | DOAJ |
| description | The traditional intertemporal current account model assumesthat all individuals follow the permanent income theory. The innovation proposed in this work is to incorporate the idea that some consumers have rule of thumb behavior with the classic current account dynamics model. The share of aggregate income that follows the rule of thumb behavior and the habit formation coefficient are estimated. Based on the current account data on the Brazilian economy, the results confirm some stylized facts presented in the literature as well as some testable basic propositions of the intertemporal current account model |
| first_indexed | 2024-12-22T08:50:25Z |
| format | Article |
| id | doaj.art-87418305c590490092cfba7947c88a34 |
| institution | Directory Open Access Journal |
| issn | 1413-8050 1980-5330 |
| language | Portuguese |
| last_indexed | 2024-12-22T08:50:25Z |
| publishDate | 2016-06-01 |
| publisher | Universidade de São Paulo |
| record_format | Article |
| series | Economia Aplicada |
| spelling | doaj.art-87418305c590490092cfba7947c88a342022-12-21T18:31:58ZporUniversidade de São PauloEconomia Aplicada1413-80501980-53302016-06-0120210.11606/1413-8050/ea138661The Dynamics of the Brazilian Current Account with Rule of Thumb ConsumersLucio Hellery Holanda Oliveira0Carlos Enrique Carrasco-Gutierrez1Universidade Católica de BrasíliaUniversidade Católica de BrasíliaThe traditional intertemporal current account model assumesthat all individuals follow the permanent income theory. The innovation proposed in this work is to incorporate the idea that some consumers have rule of thumb behavior with the classic current account dynamics model. The share of aggregate income that follows the rule of thumb behavior and the habit formation coefficient are estimated. Based on the current account data on the Brazilian economy, the results confirm some stylized facts presented in the literature as well as some testable basic propositions of the intertemporal current account modelhttp://www.revistas.usp.br/ecoa/article/view/117017Rule of ThumbConsumptionCurrent AccountIntertemporal ModelHabit Formation |
| spellingShingle | Lucio Hellery Holanda Oliveira Carlos Enrique Carrasco-Gutierrez The Dynamics of the Brazilian Current Account with Rule of Thumb Consumers Economia Aplicada Rule of Thumb Consumption Current Account Intertemporal Model Habit Formation |
| title | The Dynamics of the Brazilian Current Account with Rule of Thumb Consumers |
| title_full | The Dynamics of the Brazilian Current Account with Rule of Thumb Consumers |
| title_fullStr | The Dynamics of the Brazilian Current Account with Rule of Thumb Consumers |
| title_full_unstemmed | The Dynamics of the Brazilian Current Account with Rule of Thumb Consumers |
| title_short | The Dynamics of the Brazilian Current Account with Rule of Thumb Consumers |
| title_sort | dynamics of the brazilian current account with rule of thumb consumers |
| topic | Rule of Thumb Consumption Current Account Intertemporal Model Habit Formation |
| url | http://www.revistas.usp.br/ecoa/article/view/117017 |
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